# Ford to take government loans **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [June 23, 2009, 10:20am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579 "2009-06-23T10:20:58Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [June 23, 2009, 10:20am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/1 "2009-06-23T10:20:58Z")
Ford takes Government Assistance > DETROIT (Reuters) – Ford Motor Co. and Japan’s Nissan Motor Co. will receive nearly $8 billion combined in U.S. government loans to spur development of fuel efficient vehicles, the U.S. Energy Department said today. > Ford will receive $5.9 billion to retool factories in Michigan, Ohio, Illinois, Kentucky and Missouri in order to produce 13 models. > Nissan also is getting a $1.6 billion loan and startup green car maker Tesla qualified for $465 million. > Energy Secretary Steven Chu made the announcement today at an event at Ford headquarters in suburban Detroit. > The U.S. government first appropriated $25 billion for the program last fall. The loans are being earmarked for automakers making cars with fuel economy improvements of at least 25 percent above 2005 levels. The cars must be made in U.S. factories. > Ford is focusing on electrification and improvements to conventional engines as well as converting two truck plants for car production. > “This green partnership between Ford and the U.S. government will help accelerate the development of advanced technologies for even better fuel efficiency and emissions,” Ford CEO Alan Mulally said in a statement. > "Ford is absolutely committed to fuel economy leadership with every new model we introduce. In fact, we plan to invest nearly $14 billion in advanced technology vehicles in the next seven years. > “Our partnership with the Department of Energy also will help retool our U.S. plants more quickly to produce fuel efficient vehicles and help meet the new, rigorous fuel-economy requirements.” > The Obama administration previously said it would draw down $10 billion in loans this year and award the balance in 2010. The loan program is intended to help carmakers meet stricter government fuel-efficiency targets by spurring development of advanced gasoline-electric hybrids, all-electric vehicles and other efficient technologies. ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [June 23, 2009, 10:22am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/2 "2009-06-23T10:22:10Z")
:mamoru: ---
**Author:** ![38stang](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/38stang/32/7479_2.png) [@38stang](https://forums.speedlife.net/u/38stang)\ **Post date:** [June 23, 2009, 10:34am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/3 "2009-06-23T10:34:46Z")
Whats so funny? Its good to see that the government is investing in more fuel efficent tech. and cars. ---
**Author:** ![boxxa](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/boxxa/32/5045_2.png) [@boxxa](https://forums.speedlife.net/u/boxxa)\ **Post date:** [June 23, 2009, 10:36am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/4 "2009-06-23T10:36:53Z")
> U.S. government loans to spur development of fuel efficient vehicles, the U.S. Energy Department said today. Very different than a bailout. ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [June 23, 2009, 10:42am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/5 "2009-06-23T10:42:48Z")
> [@boxxa](#): > > Very different than a bailout. > Ford Motor Co. and Japan’s Nissan Motor Co. **will receive** nearly $8 billion combined in U.S. government loans to spur development of fuel efficient vehicles, **the U.S. Energy Department said today.** I guess that wording makes it sound more of something that was pushed on them as opposed to 100% their decision. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [June 23, 2009, 10:44am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/6 "2009-06-23T10:44:13Z")
yeah i find that companies in credit crunched industries hate to receive super low interest loans for billions of dollars. ---
**Author:** ![NYstanger](https://avatars.discourse-cdn.com/v4/letter/n/6a8cbe/32.png) [@NYstanger](https://forums.speedlife.net/u/NYstanger)\ **Post date:** [June 23, 2009, 10:44am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/7 "2009-06-23T10:44:54Z")
quesion is why is nissan getting american aide…? ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [June 23, 2009, 10:47am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/8 "2009-06-23T10:47:35Z")
> [@Joe](#): > > yeah i find that companies in credit crunched industries hate to receive super low interest loans for billions of dollars. Well why dint they take the bailout the first time around? ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [June 23, 2009, 10:48am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/9 "2009-06-23T10:48:28Z")
because the gov’t took an ownership stake in the companies in return for providing the loans. These are just standard corporate loans at a discount rate for a good cause. ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [June 23, 2009, 10:51am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/10 "2009-06-23T10:51:04Z")
> [@Joe](#): > > because the gov’t took an ownership stake in the companies in return for providing the loans. These are just standard corporate loans at a discount rate for a good cause. Haha, I always neglect the ownership part when I think of Fords decision lol. ---
**Author:** ![NYstanger](https://avatars.discourse-cdn.com/v4/letter/n/6a8cbe/32.png) [@NYstanger](https://forums.speedlife.net/u/NYstanger)\ **Post date:** [June 23, 2009, 10:51am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/11 "2009-06-23T10:51:55Z")
> [@MOBOOST4U](#): > > Well why dint they take the bailout the first time around? If your a company that doesn’t need the money to stay a float, why would you take it? GM and Dodge absolutely needed the money or else they couldn’t pay their bills any longer. Wouldn’t you wanna stand out as the only american car manufacturer not needing government aide? ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [June 23, 2009, 10:51am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/12 "2009-06-23T10:51:59Z")
as joe said… there is a BIG difference here vs. GM etc… loans for future tech. are a little difference than “help, code brown alert” ---
**Author:** ![38stang](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/38stang/32/7479_2.png) [@38stang](https://forums.speedlife.net/u/38stang)\ **Post date:** [June 23, 2009, 11:47am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/13 "2009-06-23T11:47:30Z")
I think that they title of this thread should be changed to “Goverment loans Ford money for ‘greener cars’ development” or something like that. These are loans that Ford will pay back. GM did not take loans, the govt bought shares of them in order to give them more $ to pay debt and operate ---
**Author:** ![camarojoe](https://avatars.discourse-cdn.com/v4/letter/c/c67d28/32.png) [@camarojoe](https://forums.speedlife.net/u/camarojoe)\ **Post date:** [June 23, 2009, 11:51am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/14 "2009-06-23T11:51:44Z")
> [@NYstanger](#): > > quesion is why is nissan getting american aide…? That’s my question. Does Nissan even have ANY plants in the USA? Loan or bailout, why give them a better rate if they aren’t US based? Shouldn’t that be an incentive? ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [June 23, 2009, 11:57am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/15 "2009-06-23T11:57:58Z")
it’s not a bailout, it’s a loan towards future tech for cars that are going to be built in the USA. and yes, nissan has 3 plants here. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [June 23, 2009, 11:59am UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/16 "2009-06-23T11:59:00Z")
it’s not a bailout, it’s a loan towards future tech for cars that are going to be built in the USA. and yes, nissan has 3 plants here. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [June 23, 2009, 12:20pm UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/17 "2009-06-23T12:20:19Z")
Why Nissan… > Nissan North America - U.S. Manufacturing > Nissan has three production plants in the United States - in Smyrna and Decherd, Tennessee, and Canton, Mississippi. Production at Nissan’s Smyrna Plant began in June 1983. The vehicle assembly plant has an annual production capacity of 550,000 vehicles and represents a capital investment of $2.5 billion. The plant produces the Nissan Altima, Nissan Maxima, Nissan Xterra, Nissan Frontier and Nissan Pathfinder. > The vehicle assembly plant in Canton, Mississippi, began producing vehicles in May 2003. The $1.4 billion plant now produces the Nissan Altima, Nissan Quest, Nissan Armada, Nissan Titan and Infiniti QX56. The plant has an annual production capacity of 400,000 vehicles. > Nissan’s powertrain assembly plant in Decherd, Tennessee, began production in May 1997. Today the plant manufactures all the engines for the complete lineup of Nissan and Infiniti vehicles produced in the U.S. The plant also forges crankshafts, and cylinder block casting operations will begin in the spring of 2008. > Nissan North America - Smyrna > 983 Nissan Drive > Smyrna, TN 37167 > Phone: (615) 459-1400 > Nissan North America - Canton > 300 Nissan Drive > Canton, MS 39046 > Phone: (601) 855-6010 > Nissan North America - Decherd > 520 Warren Chapel Road > Decherd, TN 37324 > Phone: (931) 962-5000 Plus their various non-manufacturing presence in the US. [http://www.nissanusa.com/about/corporate-info/nissan-in-north-america.html](http://www.nissanusa.com/about/corporate-info/nissan-in-north-america.html) ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [June 23, 2009, 1:18pm UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/18 "2009-06-23T13:18:10Z")
> [@Joe](#): > > yeah i find that companies in credit crunched industries hate to receive super low interest loans for billions of dollars. What are the super low rates? I can’t find them published, but I didn’t look very hard. ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [June 23, 2009, 1:21pm UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/19 "2009-06-23T13:21:09Z")
I don’t think they are published, but incentive programs like this are always way better than their cost of capital in, say, the bond market. ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [June 23, 2009, 1:29pm UTC](https://forums.speedlife.net/t/ford-to-take-government-loans/69579/20 "2009-06-23T13:29:03Z")
> [@38stang](#): > > I think that they title of this thread should be changed to “Goverment loans Ford money for ‘greener cars’ development” > or something like that. > > These are loans that Ford will pay back. GM did not take loans, the govt bought shares of them in order to give them more $ to pay debt and operate Call it whatever you like, but 3 months ago, Ford made a huge deal how it didn’t need any assistance. Now it has it’s hand out. And I don’t blame them, if someone is handing out money cheaper than you can get it, swallow your pride and take the money. [Next page](https://forums.speedlife.net/t/ford-to-take-government-loans/69579.md?page=2)